Russia to Raise Defence Spending to $203 Billion by 2027

Russia plans to spend nearly $203 billion on defence in 2027, about 27% more than initially forecast and the highest level since the war in Ukraine began in 2022, according to government documents reviewed by Reuters. Total defence spending is projected to reach roughly $590 billion over the next three years. The Kremlin has also revised its 2026 budget deficit forecast upward to 3.2% of GDP, from 1.6%, while total government spending is expected to rise by 13.2% next year. To finance the widening deficit, Russia plans new taxes on metals and mining companies, increased borrowing, and use of National Wealth Fund reserves. Public debt is projected to exceed the 20% safety threshold in 2027, while oil and gas revenue forecasts have been lowered.